Outplacement Contracts: How They Work and Why Ours Might be the Best for Your Business
When it comes to helping transitioning employees, outplacement can be a powerful tool for both the employer and the employee.
But with so many options out there, it’s easy to get caught up in pricing structures, utilization rates, and the confusing language of contracts.
I want to make things simple for you, and that’s why I’m excited to talk about how our outplacement contracts work at Turbo Transitions - and why I genuinely believe we have the best model out there.
What is an Outplacement Contract?
Outplacement contracts are agreements between a company and an outplacement service provider to help transitioning employees find new job opportunities.
These services are often provided when employees are being let go, giving them access to everything from resume writing assistance and career coaching to interview prep and job search tools.
The goal is to make sure these employees have every opportunity to land on their feet as quickly as possible, while also providing the employer with peace of mind that they are doing right by their people.
When companies partner with an outplacement provider, they want to make sure that their former employees are well taken care of.
This is why choosing the right outplacement partner and understanding the terms of the contract is so important.
And that’s where we come in!
How Outplacement Contracts Usually Work
Most outplacement contracts are based on a fee-per-employee model. Employers agree to pay a certain amount for each employee that takes advantage of outplacement services.
This is generally seen as the simplest way to structure these agreements, as it’s predictable and straightforward for both parties.
However, a big issue with this model is the pressure that some outplacement agencies place on employees to respond and the extra “hidden” costs associated with them.
Many firms focus on making sure employees use the services simply because it allows them to charge the employer.
The last thing a transitioning employee wants is to be constantly bothered by someone trying to get them to engage - especially when they’re already dealing with a stressful situation.
Not to mention, many of these agencies also tack on additional fees that aren’t mentioned upfront, creating unexpected costs for employers.
Our Outplacement Contract Model: Transparent, Flexible, and Cost-Effective
At Turbo Transitions, our outplacement contracts are built around transparency, flexibility, and a pricing model that just makes sense. Let me break it down for you:
Transparent Pricing
We believe that employers should know exactly what they’re paying for. Costs for outplacement across the industry can often exceed $2,000 per employee.
Our pricing starts at $425 per employee depending on the volume of employees transitioning, and our maximum charge per employee is $475.
This approach makes our services much more accessible, making sure that you get the support you need without breaking the bank. We’re not interested in padding invoices; we’re here to provide real, effective career transition support.
Let’s use an example to better illustrate our pricing compared to others:
Employer A (using another agency): Costs an average of $1,875 per employee.
Turbo Transitions: Costs $450 per employee.
Let’s say 65% of your 100 transitioning employees decide to use Employer A’s outplacement services. That would cost $121,875 (65 employees x $1,875).
If 100% of those employees choose to use our services, it would only cost you $45,000 at max (100 employees x $450).
It’s a simple comparison, but it shows just how much you could save while still providing exceptional outplacement support to your employees.
Flexible Utilization Rates
Utilization rates are a critical aspect of any outplacement contract. Essentially, this is the percentage of employees who actually take advantage of the services offered to them.
Many of the larger outplacement agencies today achieve about 60%-70% utilization rates. We’re proud to say we achieve similar numbers without having to extensively contact or push our services onto transitioning employees.
We are confident in our services, and we don’t need to pressure employees into using them - we simply offer them, and they engage when ready because they find genuine value.
Two Opportunities to Opt Out
We’ve taken it a step further by giving employees two opportunities to opt out of our services at which point you wouldn’t be charged.
We typically see a 5%-10% opt-out rate, which can lead to further savings for your company. If employees let us know during these stages that they won’t be using the services, we update the contract and your invoice accordingly.
For instance, if you have 7 employees who might need our help and 2 of them decide they don’t need our services after our first email, we’ll update your contract and invoice so that you only pay for the 5 employees who do need assistance.
This model helps us manage our resources effectively while keeping our pricing fair and transparent.
You might have heard about other firms that only charge when an employee actually uses their services. While that sounds good in theory, we’ve seen it lead to unnecessary pressure on employees, with firms sending excessive emails and calls just to get a response.
We’re not about that at Turbo Transitions. We want to create a supportive environment, not one that feels pushy or overwhelming.
Why We Stand Out
While we’re proud to provide significant value in terms of cost savings, it’s not just about that. It’s about making sure the experience of transition is one that feels supportive, individualized, and effective.
We care about your people. We want to see them thrive, find new opportunities, and feel empowered as they make their next move.
We provide comprehensive services that include career coaching, resume and LinkedIn profile optimization, and job search assistance.
The feedback we’ve received from employees and employers alike has been fantastic, and I’m confident that partnering with Turbo Transitions is one of the best choices you can make for your business and your people.
We’re proud to be a partner that you can trust - one that makes career transitions smoother, more effective, and less stressful for everyone involved.
“Replacing an employee costs an organization between 33% to 50% of their salary, and this can increase if the role requires specialized skills. This is why companies are investing more in outplacement services to mitigate these costs by helping laid-off workers quickly find new roles”
Wrapping Up | Outplacement Contract
If you’re looking for an outplacement solution that works for you - one that’s transparent, cost-effective, and built around real results - then I’d love for you to consider Turbo Transitions. Let’s talk about how we can support your team, reduce your costs, and make career transitions a positive experience.
Feel free to visit our website or explore more about our outplacement services. We’re ready to redefine outplacement, together.
For more insight into outplacement services, you might find this guide from SHRM helpful.
Additionally, check out Forbes' article on the benefits of outplacement for more context on why investing in outplacement makes good business sense.
Thanks again for reading - hope you have an amazing week!
Tags: outplacement, outplacement contract
Author: Reid Alexander
Disclaimer: This content is for informational purposes only & not intended as professional legal or HR advice. Consult with qualified professionals for advice tailored to your specific situation. The author & publisher disclaim any liability for errors, omissions, or actions taken based on this content.